MANAGEMENT DISCUSSION & ANALYSIS FINANCIAL REVIEW Consolidated Statement of Profit or Loss (continued) 2023 2022 HK$M HK$M Reference Net Finance Charges 520 187 Note 10 The increase of HK$333 million principally due to a higher level of borrowings in Hong Kong and the Chinese Mainland, and increase in interest rates in Hong Kong and the U.S.A., partly offset by the increase in interest capitalised on investment properties and properties for sale in Hong Kong and the Chinese Mainland. Share of Profit Less Losses of Joint Venture Companies 124 1,443 Note 8(a) The decrease of HK$1,319 million principally reflected the fair value loss of HK$667 million in 2023 (compared with the fair value gain of HK$510 million in 2022) and loss of contribution from Taikoo Li Chengdu as joint venture companies after becoming subsidiaries of the Group. Share of Profit Less Losses of Associated Companies (416) 12 Note 8(a) The loss of HK$416 million as compared to a gain of HK$12 million in 2022, primarily reflected the fair value loss of HK$454 million for the year, partly offset by higher hotel revenue in Hong Kong. Taxation 1,617 2,065 Note 11 The decrease of HK$448 million was principally due to a decrease in deferred tax in relation to the fair value changes in respect of investment properties in the Chinese Mainland and the U.S.A. Profit Attributable to the Company’s Shareholders 2,637 7,980 Note 8(a) The decrease of HK$5,343 million principally reflected a fair value loss on investment properties in 2023 (compared with a fair value gain in 2022), higher net finance charges and lower profit from property trading, partly offset by higher profit from property investment and hotel. 76